Helen Curtis explores locked box versus completion accounts in share purchase agreements which she says are commonly used but not well understood...
Share purchase agreements are a fairly common tool used in business to transfer shares. However, while widely used, they are not always well understood. One aspect of a share purchase agreement is the handling of the accounts on the day of purchase. The date on which ownership of a company moves from the seller to the buyer is described as "completion" in a share purchase agreement. From completion, the buyer takes all risks and benefits of the company. For this reason, it is essential that the buyer knows the full extent of the financial position of the company on completion. M...
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